Taishin Bank Fined 14 Million TWD and Restricted from High-Asset Services After Failing to Report Embezzlement

Central News Agency, Taipei, May 26. The Financial Supervisory Commission (FSC) announced today that a former relationship manager at Taishin Bank embezzled a total of 1.57 million TWD from two elderly clients by swapping ATM cards. Although the FSC discovered the case during an inspection last year, Taishin Bank did not report it as a significant incident, claiming it had already settled with the clients. Consequently, the FSC fined the bank 14 million TWD for violating the Banking Act and ordered a one-month suspension of new high-asset business applications.

Taishin Bank stated it accepts the penalty and will use it as a lesson to comprehensively review its employee management, internal controls, and reporting mechanisms to ensure financial order and protect client rights.

FSC Banking Bureau Deputy Director-General Wang Yun-chung stated that the case was discovered when a branch contacted a client who noticed a balance discrepancy. He noted that the perpetrator "abused the trust of elderly clients." The methods involved stealing ATM cards during home visits and swapping them, as well as misappropriating cash intended for insurance purchases.

The FSC has ordered Taishin Bank to report the employee, Zhang, to the authorities and conduct a thorough review of supervisory responsibilities. The bank is also required to increase its operational risk capital by 2.6 billion TWD. New high-asset business applications will remain suspended until improvements are verified.